Maersk in China drops services to and from 10 ports

Published: 2016-08-11 Views: 50

Core Tip: As part of measures to reduce costs, Maersk Line has decided to stop services to and from 10 ports in China.

As part of measures to reduce costs, Maersk Line has decided to stop services to and from 10 ports in China. Maersk Line has, like other container shipping companies, been hit by historically low freight rates in the first half of this year due to a slowdown in global growth and many new, larger vessels being added to the market, reports Reuters.

Maersk Line said it would stop serving ports in Chizhou, Luzhou, Yingkou, Jinzhou, Rizhao, Yueyang, Lijiao, Taiping, Jiaoxin and Nansha old port.

The ports are currently served by feeder vessels that move goods to larger ports where mega-vessels with capacity of up to 20,000 20-foot containers take over and transport the goods to ports mostly in Europe and the United States.

Maersk Line said in a statement it would focus on ports that offered the best growth prospects and opportunities for its customers.

The A.P. Moller-Maersk group will publish second-quarter results on Friday and Maersk Line is expected to post a loss of $67 million, according to a Reuters poll.